India likely to cut investment target by 40% in FY25, reports Economic Times By Reuters
MUMBAI (Reuters) – India is likely to cut its rate of disinvestment and demonetization by 40% by 2024-25 in next month’s state budget, the Economic Times reported on Saturday, as a planned sale of state-owned companies comes into effect. . a lot of obstacles.
The government is likely to revise the target to less than 300 billion rupees ($3.47 billion) from 500 billion rupees, the newspaper said, citing people familiar with the talks.
The government may set a target of 450 billion to 500 billion rupees for the next financial year, as it aims to end IDBI Bank (NS:) transaction and increasing its bid to make money, the report said.
The Treasury Department did not immediately respond to a Reuters email seeking comment.
The Government of India, which owns 45.48% of IDBI Bank, and the Govt Life Insurance (NS:) An Indian conglomerate that owns 49.24%, collectively plans to sell 60.7% of the lender. The sales process was first announced in 2022.
Prime Minister Narendra Modi’s administration has departed from the usual practice of setting a budget sale policy that was introduced last year.
Modi’s desire to privatize state-owned firms has backfired due to regulatory hurdles, complex decision-making, political considerations and valuation problems, but his government has delivered more share sales than any previous regime.
The government has collected 86.25 billion rupees in capital formation so far this fiscal year.
The government will continue to reduce its stake in other entities through the sale route, the report said.
($1 = 86.5710 Indian rupees)
